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Bank of the United States
The first bank of the united states was chartered in 1791 by congress and signed by George Washington who believed it was time to make a standard currency. The bank collected fees and made payments for the federal government. State banks opposed the bank because they believed it gave too much power to the federal government. -
Second bank of the United States
The second bank of the United states got its charter five years after the first bank failed. It didn't regulate state or other banks. While the state banks printed their money the federal didn't until the Civil war. Eventually went bankrupt in 1841. -
Civil War (printing currency)
The United States was very deep in debt prior to the war, to help pay off that debt the government passed the Legal tenders act in 1862. This act allowed the federal government to print money also known as greenbacks, and begin to sell bonds. -
National banking act
Created A system of national banks and constant currency. Made it so banks could have state or national charter also known as dual charter. -
Federal Reserve act
This act created a central bank that was in charge of monetary policies. -
Great Depression
After the Great depression only stable banks were allowed to reopen. It separated commercial and investment banking and created FDIC. -
Glass-Steagall Banking Act
This act was passed by congress and signed by FDR in 1933. Prohibited commercial banks from engaging in the investment business. -
1970's
The recession during this time caused an increase in bank failures. -
1982
After congress allowed banks to make more high risk loans and investments the banks failed and the federal government was forced to reimburse investors. Led the FDIC to take over S&L. -
Gramm-Leach Bliley Act
This act allowed commercial banks, investment banks, securities firms to consolidate their money.
